The Armenian corporate securities market has favorable conditions for new issues, says Gevorg Machanyan, Executive Director of "ArmSwissBank" CJSC. He says that "now some stabilization in interest rates is observed and investors benefit from it". At the same time, the market faces a collateral liquidity problem, which considerably reduces the possibility of new issues of corporate securities today.
"In addition, a professional stock exchange, even with an international link, is not enough for development of the securities market in Armenia, unfortunately", says Machanyan. He stresses the need for active issuers, investors, as well as the need for relevant tax regulation and infrastructure. At the same time, Machanyan emphasizes the need to create new tools and improve the investment climate so that the new issues could create new opportunities for investors on not only local but also international markets.
To note, today, on April 21, at a special ceremony held at NASDAQ OMX Armenia ArmSwissBank announced the placement of the third issue of its USD denominated bonds, as well as introduced the first and the second placements of the bonds by the Bank. On April 16, 2015 placement of the first and the second issues of foreign currency denominated bonds by "ArmSwissBank" CJSC took place at NASDAQ OMX Armenia. The Bank submitted for placement USD 2,000,000 (1st tranche, SWISB1) and USD 3,000,000 (2nd tranche, SWISB2) nominal coupon bonds. The first tranche of bonds included 2,000 coupon bonds (SWISB1) with coupon rate of 7.5% and maturity period of 3 years while the second tranche of bonds included 3,000 coupon bonds (SWISB2) with coupon rate of 8.0% and maturity period of 4 years. The nominal value of the bonds for both tranches is USD 1,000. Placement results for SWISB1 bonds: purchase orders for a total of USD 2,000,000 were placed for the Company's bonds, as a result of which the bonds were fully placed. The Issuer has attracted USD 2,000,000 from placement. The cut price of the bonds was USD 1,000, weighted average yield and the cut yield was 7.5 %. Placement results for SWISB2 bonds: purchase orders for a total of USD 3,010,000 were placed for the Company's bonds, as a result of which the bonds were fully placed.
The Issuer has attracted USD 3,000,000 from placement. The cut price of the bonds was USD 1,000, weighted average yield and the cut yield was 8.0 %.
The third issue of USD denominated bonds comprises 5,000 coupon bonds with nominal value of USD 1,000, annual yield of 8.5% and maturity of 5 years. Placement of the bonds will take place on April 27, 2015 at NASDAQ OMX Armenia.